A Simplified Guide To Microinvesting
Topic - Savings Tools
Published by| Jul 01, 2022
What is Micro-Investing?
Micro-investing is the act of making small investments of either a few dollars or a few cents at a time, sporadically or consistently. It is typically done by new investors, who are seeking to get their feet wet in the world of investing. Micro-investing is a great way to get immersed in investing and gain a better understanding of it overall with significantly less risk. You can put forgettable amounts of money away on a consistent basis to allow your portfolio to grow and compound over time. Before you know it, you might open up your investment app of choice and be surprised at what that spare change did for you in comparison to putting it in a piggy bank. Below, you can read about 6 of the best apps for getting started in micro-investing.
Stash is the first micro-investing platform we will be going over today. Stash serves as an easy entrance into stock trading and investing while also offering education tools so users can learn as they invest. You can invest in a variety of different ways depending on your membership, including stocks, fractional shares, ETF's, bonds, and more. Even better, you can also start micro-investing with that spare pocket change thanks to Stash's round up feature. Stash features 3 subscription plans, priced at $1, $3, and $9 a month. There are a few key differences in the plans. The $3 membership gives you access to a few more investment options, such as traditional and Roth IRA's, while the $9 membership gives you 2x stock-back shopping rewards. You also get $10,000 in life insurance for free provided by Avibra.
Acorns is known for being one of the easiest investment platforms to utilize. Acorns has 2 features that make saving and investing effortless. First, the round ups feature simply rounds up to the nearest dollar and puts it away for you. Second, “found money” rewards you for shopping at partner companies. These rewards vary and can be as high as 10% cash back on your purchase. The set-it-and-forget-functionality of Acorns allows you to determine the size of your round ups and your tolerance for risk when investing. After your account is set up, investing is as easy as swiping your debit card.
Many people are not well versed in the world of investing, and that can hold a lot of people back. Public.com has some of the best features for getting you educated and simplifying investing as a whole. Public.com allows you to take a look at and follow other users' portfolios to get an idea of where other investors are putting their money. You can also invest by theme to find multiple companies in a single sector you think has potential. You don't have to commit to whole shares either because fractional shares are available as well. Another cool feature is that you can drag and drop investments to organize them in long-term or short-term portfolios, making the separation of the two extremely easy.
Greenlight is a financial tool for parents who want to educate their children on finance, money management, investing, and more. Greenlight features in-app chores, which, upon completion, release and trigger deposits. You can also automate deposits for your children weekly or monthly. With Greenlight you can predetermine spending, earning, and savings goals for your children. Are you more interested in the investment side of things? With GreenLight + you get access to a custodial, micro-investing account for only $7.98 a month.
M1 Finance offers more than just micro-investing. It has multiple financial components all in one platform, ranging from banking and borrowing to investing. When you open a checking account and an investment account, you will receive an M1 Finance debit card. Further, having both accounts allows you to utilize M1 Finance's low-cost portfolio loan option. This lets you borrow against your portfolio once it hits the minimum required balance without utilizing or impacting your credit. You can get all of the bells and whistles with M1 Finance for only $125 dollars a year, and you won't have to worry about management fees either.
SoFi Invest is another platform that offers so much more than just simple micro-investing. SoFi has been recognized for being very friendly to college students and recent graduates, with features tailored primarily to that demographic. This includes student loan refinancing and tools for individuals who are recently starting their credit journey related to budgeting and credit scoring. You can schedule 1-on-1 financial consulting with a SoFi professional to assist you in reaching your financial goals. Best, you can get started with SoFi today with as little as $1 dollar invested in a variety of different assets. SoFi has investment options in stocks, ETF's, fractional shares, initial public offerings, retirement plans, and even cryptocurrency. Did I mention there isn't any trade commission?
Should You Start Micro-Investing?
If you are someone who wants to start investing but you don't quite understand where to begin, then micro-investing is definitely a good option for you. If you're looking on behalf of your children, platforms like Greenlight or Acorns can help them to start thinking financially. All of the platforms listed above can help you take your first steps in the world of investing with very little financial risk while gaining exposure to a wide variety of investment options. Even better, these platforms feature simplified investment options and educational tools to get you on the path to success. Regardless of whether it is a few dollars or a few cents, the possibilities are endless when it comes to micro-investing, and the skills you develop will serve you in the long term. Click on any of the titles above to start your micro-investing journey.